October 9, 2018

Director Pay: A Close Look at the Trends

Executive pay gets plenty of attention in the press and from shareholders. Whether it’s the top 10 pay disclosures of the year or the latest severance package of a big company CEO, the story is sure to garner headlines. As if CEO pay isn’t enough, director pay is now starting to grab the attention of investors as well. In this Farient brief, we take a closer look at the trends of director pay and where it might be heading in the future.

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September 18, 2018

Board Diversity Legislation: What You Need to Know

board diversity legislation

Diversity on corporate boards continues to be a pressing topic. According to research from Catalyst, Women on Boards 2020 and a recent study from McKinsey, gender diverse boards are 21 percent more likely to experience above-average performance. This, in turn, continues to push investors to demand that companies diversify their boards. Within the past year, BlackRock, State Street and Vanguard have changed their voting guidelines and will withhold votes for sitting directors at companies that do not have women on their boards. The hurdle is expected to rise in 2020 when these investors expect at least two female directors to be present on every board. Some states are even pushing board diversity legislation for public companies.

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August 15, 2018

See what Seven Months of the CEO Pay Ratio Looks Like

CEO pay ratio Photo by Max Bender on Unsplash

After the initial rush of proxy season, CEO pay ratio disclosures continue to trickle in. We highlighted the fact that sector and staffing strategy, and the associated employee pay, significantly influence the reported ratio. We also suggested that comparisons across companies would continue to be difficult given latitude in acceptable calculations. In this week’s Farient Brief, we revisit the pay ratio for new discoveries since May.

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July 13, 2018

A Deep Dive on This Year’s Say on Pay Results

Say on Pay

It’s hard to believe, but the eighth year of Say on Pay has come and gone. Despite legislative threats to other provisions of the Dodd-Frank Act, it appears that the areas concerning executive pay are safe for now. In this Farient Brief, we’ll look at Say on Pay results and dive a little deeper to better understand investor focus for 2018.

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May 7, 2018

Initial Readings of the CEO Pay Ratio

Nearly eight years after it was mandated by Dodd-Frank, the CEO Pay Ratio is making its debut. To date, about half of the S&P 500 and a third of the Russell 3000 have reported their figures. In this Farient Brief, we review pay ratios reported through April 15, diving deeper to see what they are telling us so far, and get a first glimpse at where they are likely to end up by the close of proxy season.

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